The FTSE 100 reached a record high this week, nearing 11,000 points after recent acquisition deals. US tech stocks faced a selloff due to AI market repricing. Analysts predict currency performance and interest rates will impact the FTSE’s next moves. UK unemployment hit 5.2%, inflation fell to 3%, signaling a slowing economy.

Bank of England Governor anticipates a significant drop in UK inflation in Q1 2026. Economists suggest a potential recession. UK services inflation remains high at 4.4%, raising caution around rate cuts. The Monetary Policy Committee faces a decision on March 19 amidst economic challenges. FTSE 100 investors remain optimistic despite economic concerns.

Read more at Morningstar: Investor Focus: FTSE 100 Outlook, Nvidia Earnings, UK Inflation Falls